Bitcoin News Today: Bitcoin Struggles to Outperform Gold as Credibility as Independent Asset Tested

Generated by AI AgentCoin World
Sunday, Aug 17, 2025 6:57 am ET1min read
BTC
--
Aime RobotAime Summary

- Mike McGlone of Bloomberg Intelligence warns Bitcoin must stay above 35 ounces of gold to retain its credibility as an independent asset class.

- Current Bitcoin valuation nears this threshold, with dips risking capital shifts toward traditional assets like gold and U.S. Treasury bonds.

- Rising U.S. bond yields and China's 1.75% rates could redirect investments from volatile cryptocurrencies to stable government debt.

- Speculative trading and macroeconomic sensitivity challenge Bitcoin's legitimacy as a store of value, according to McGlone's analysis.

- Sustained outperformance against gold and bonds is critical for Bitcoin to secure its status in the global financial system.

Bitcoin’s position as an independent asset class remains under scrutiny as it continues to lag behind gold, a long-standing store of value, according to Mike McGlone, chief commodity strategist at Bloomberg Intelligence. In a report dated August 17, 2025, McGlone highlighted that

Bitcoin
must remain above the equivalent of 35 ounces of gold to maintain its credibility as a standalone asset. This benchmark serves as a critical threshold for investors evaluating its long-term viability [1].

Currently, Bitcoin is valued at approximately 35 ounces of gold, a level that must be maintained to avoid signaling weakness in the market. Should it drop below this level, it could prompt a shift in investor sentiment, potentially steering capital away from cryptocurrencies and toward more traditional assets [1].

McGlone also noted that U.S. Treasury bonds are emerging as an increasingly compelling investment alternative, particularly as yields in China approach 1.75%. This development could see institutional and retail investors redirect funds from high-volatility assets like Bitcoin to the relative stability of U.S. government debt [1].

The debate over Bitcoin’s role as an independent asset is further complicated by its reliance on speculative trading. McGlone argues that the cryptocurrency has yet to fully establish itself as a legitimate store of value and remains heavily influenced by market sentiment and macroeconomic trends [1].

Investors are being urged to closely monitor Bitcoin’s performance against gold, as it serves as a key indicator of its broader market acceptance. If Bitcoin cannot outperform traditional assets like gold and bonds in terms of stability and returns, its classification as a standalone asset may continue to be questioned [1].

The uncertainty surrounding Bitcoin’s future underscores the broader challenges faced by digital assets in securing a distinct and stable position within the global financial system. For now, gold remains the dominant store of value, and Bitcoin’s continued existence as an independent asset will depend on its ability to demonstrate resilience and sustained performance against this benchmark [1].

Source: [1] Bitcoin’s Future as an Independent Asset Remains Uncertain Amid Gold’s Continued Dominance, Says McGlone (https://en.coinotag.com/bitcoins-future-as-an-independent-asset-remains-uncertain-amid-golds-continued-dominance-says-mcglone/)